In the context of globalization of automobile production, many automakers are developing global procurement of parts in order to guarantee the quality of vehicles and reduce costs. The advantage of global procurement is that OEMs can make full use of the intensified competition in the parts and components market worldwide, obtain the latest technology, adapt to fluctuations in exchange rates, achieve bulk purchases by the Group, and obtain high-quality accessory products. Therefore, the entire vehicle company implements the global procurement strategy, expands the outsourcing rate, and reduces the self-control rate, which has become the development trend of the world's auto industry.
In the first three quarters of 2006, China's auto body and parts exports reached 3.96 billion U.S. dollars, accounting for 42% of total auto exports. Multinational car companies choose low-cost countries to purchase parts and components, and it is predicted that 70% of parts will be concentrated in Chinese procurement. Therefore, China's auto parts exports have huge business opportunities.
At present, China’s auto parts suppliers face four great opportunities arising from global procurement.
Foster continuous improvement
The lack of continuous improvement in international standards is a common problem among Chinese parts and components companies. Today, although the international quality system certification is considered by many parts and components enterprises in China as a stepping stone for export, many companies do not know what the essence of certification is, and it is even more impossible to continuously improve according to the requirements of the standard. As a result, the distance between some companies and international standards has increased.
Regardless of whether it is Ford Q1 or ISO/TS 16949, the essence of its certification is to require companies to continuously improve their quality, service, and logistics. However, most of the parts and components enterprises are in the status quo and do not understand what kind of benefits they can bring to themselves in accordance with the substantive improvement of international standards, and they are unwilling to invest more in this area. Some companies have passed the international quality system certification, but they lack a stable quality management system, and they do not have the ability to continuously improve their products.
Increase professionalism
Insiders pointed out that domestic parts and components companies should not only stay at this level, but should do a good job. Many parts and components companies do not understand this approach. In their view, this is not necessary, and it adds to the cost.
Collins Ackermann, a company specializing in the production of automotive flooring and acoustic components, has captured 90% of North America's market share thanks to its advantages in this field. When the company encountered difficulties and applied for bankruptcy, Ford, General Motors, DaimlerChrysler, Toyota and other large companies immediately provided loans to help the company tide over the difficulties, because these automakers knew that if Collins Ackermann could not continue to supply , then the car market will be paralyzed.
This is the magic of specialization. In this regard, Wanxiang Group is a model for Chinese parts and components companies. Its oldest universal joint product costs two to three times that of 10 years ago, and its price is only half of that of the same year. However, as the scale of production continues to expand, technology and efficiency continue to increase. In the past 10 years, the profit of universal cash flow has remained unchanged. It has increased by 6 times. Chinese parts and components companies should aim for specialization and vertical development to meet the needs of global procurement.
Broaden the information dissemination channel
The biggest bottleneck of Chinese auto parts companies entering the global supporting system is the poor distribution of information. The common practice in foreign countries is to use bottlenecks such as industry associations to expand bottlenecks, and at the same time invite world-renowned consulting companies to assist implementation and supervision.
Some multinational companies’ procurement personnel have found that it is almost impossible to rely on their own strength to complete billions of large-scale purchases in China.
Forming a joint force with the vehicle company
At present, the competition in the domestic auto parts supply market is very fierce. Almost all parts suppliers have encountered such an embarrassment. That is, vehicle manufacturers put forward price reduction requirements for spare parts suppliers that have no room for maneuver, otherwise they will cancel their parts and components. The supply qualification.
China's auto prices have been declining, and will only be relatively stable if they fall to a suitable level. Vehicle manufacturers and component suppliers are all seeking to survive in competition. For example, in Europe, the earliest cars did not have air conditioners installed, and they all began to install air conditioners. However, they did not increase the prices of cars, but they were improving their competitiveness. From this perspective, a concerted effort must be made between vehicle manufacturers and component suppliers to increase the market competitiveness of products.
The successful experience of multinational car companies tells us that a strong auto group needs a strong component supply system to support it.
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